07/24/2022
Great advice!
Today on the radio show I had multiple people call in about properties they own that were rentals but now they are considering selling. Since 2020, I have specifically seen a large uptick in the Greater New Orleans area of landlords looking to exit the business or retire. I have helped many of them.
If you are thinking of getting out of the rental property business, keep these tips in mind:
❌ Don’t sell without first talking to a real estate specific CPA to understand what role Uncle Sam will play in your specific situation. This can be a costly mistake and I have seen it made many times.
✅ Consider why you are selling. Is it to escape the hassles of tenants, repairs, management, etc? Is it to invest that money somewhere else? Have a plan for the proceeds. If you don’t have a plan for reinvesting them, highly consider owner financing as it will bring you in returns without the hassle of management or upkeep of the property. Cash, as we all know, is melting and if it sits in the bank, it will make sorry returns - if they can even be called that.
✅ If you want top dollar, a homeowner living in the property will generally be the one to pay it. But keep in mind that they will demand the most out of the property condition wise and vacancy wise. If condition and vacancy are an issue, consider selling to another investor.
✅ If you sell to an investor, make sure you are dealing with a credible one. As discussed on the show today, many landlords receive mail or phone calls about a cash offer. Sometimes those are credible investors, sometimes they are not. Make sure to do your homework and check them out. Do they have the funds, do they have proof that they do what they say? I have dealt with numerous owners lately left at the closing table by investors who failed to show up to buy their properties from them.
If you have a rental property (or a few) in South Louisiana or South Mississippi and would like to sell to an investor like myself, shoot me a message. I would be happy to chat with you, make you an offer, and share with you your options for moving forward so you can make an informed decision for your family.
